Bitcoin price held steady above the key resistance level at $92,000 as market participants reflected on the latest US inflation data and the progress on the CLARITY Act in Congress. The coin has formed a highly bullish chart pattern, pointing to an eventual rebound, potentially to $100,000 in the near term.
Bitcoin Price Rises as Core US Inflation Drops
The BTC value rose for the third consecutive day as market participants reacted to major news events from the United States.
One of the most important one was the December consumer inflation report, which showed that core inflation moved downwards during the month.
The core Consumer Price Index (CPI), which excludes the volatile food and energy products, dropped from 2.7% in November to 2.6% in December, meeting analysts’ forecasts. It also dropped from 0.3% to 0.2% on a month-on-month basis.
On the other hand, the headline Consumer Price Index remained unchanged at 2.7% YoY and 0.3% MoM. These numbers mean that US inflation is getting contained and that Donald Trump’s tariffs have not had major impacts on inflation as was widely expected.
There are signs that US inflation will continue to cool this year as gasoline prices have tumbled to the lowest level in years. Also, mortgage rates has continued falling, and Donald Trump is focusing on the affordability issue ahead of the midterms. For example, he has announced a move to lower mortgage rates by purchasing mortgages worth over $200 billion and a cap of credit card interest rates.
Therefore, the falling inflation and the softening labor market mean that the Federal Reserve may decide to cut interest more times than expected this year. In the last meeting, the bank hinted that it will deliver one cut this year.
CLARITY Act Bill Released Ahead of Markup
Bitcoin price also rose as investors reacted to the progress on the CLARITY Act, whose document was released today ahead of the markup on Thursday.
The bill seeks to make major changes in the crypto industry, including by separating the roles of the SEC and the CFTC. It will give the CFTC more power to police the industry compared to the SEC.
The markup will allow for amendments before it moves to the full house for the vote. A vote for the bill will be bullish for the BTC price.
BTC Price Technical Analysis
The daily timeframe chart shows that the Bitcoin price has formed a highly bullish chart pattern known as an ascending triangle pattern. This pattern is made up of horizontal resistance and an ascending trendline. It is one of the most common bullish continuation patterns in technical analysis.
Bitcoin price has also moved above the 50-day Exponential Moving Average and is about to flip the Supertrend indicator from red to green.
Bitcoin Price ChartTherefore, the coin will likely continue soaring as bulls target the key resistance level at $100,000, which coincides with the Major S&R Pivot point of the Murrey Math Lines.
A drop below the ascending trendline of the triangle pattern will invalidate the bullish outlook and point to more downside.
Source: https://coingape.com/markets/bitcoin-price-eyes-100k-as-core-us-inflation-slips-ahead-of-clarity-act-markup/
